Correlation Between China Securities and China Telecom
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By analyzing existing cross correlation between China Securities 800 and China Telecom Corp, you can compare the effects of market volatilities on China Securities and China Telecom and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Securities with a short position of China Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and China Telecom.
Diversification Opportunities for China Securities and China Telecom
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and China Telecom Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Telecom Corp and China Securities is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Securities 800 are associated (or correlated) with China Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Telecom Corp has no effect on the direction of China Securities i.e., China Securities and China Telecom go up and down completely randomly.
Pair Corralation between China Securities and China Telecom
Assuming the 90 days trading horizon China Securities is expected to generate 1.32 times less return on investment than China Telecom. But when comparing it to its historical volatility, China Securities 800 is 1.06 times less risky than China Telecom. It trades about 0.04 of its potential returns per unit of risk. China Telecom Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 564.00 in China Telecom Corp on August 25, 2024 and sell it today you would earn a total of 78.00 from holding China Telecom Corp or generate 13.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. China Telecom Corp
Performance |
| Timeline |
China Securities and China Telecom Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
China Telecom Corp
Pair trading matchups for China Telecom
Pair Trading with China Securities and China Telecom
The main advantage of trading using opposite China Securities and China Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, China Telecom can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in China Telecom will offset losses from the drop in China Telecom's long position.| China Securities vs. Yuan Longping High tech | China Securities vs. Saurer Intelligent Technology | China Securities vs. Fujian Rongji Software | China Securities vs. Jinhui Liquor Co |
| China Telecom vs. Kunwu Jiuding Investment | China Telecom vs. Fiberhome Telecommunication Technologies | China Telecom vs. Jointo Energy Investment | China Telecom vs. Peoples Insurance of |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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